Korean Daewoo E&C seeks biz amid Indonesia’s new capital plan

Daewoo E&C signs MOU on an immersed tunnel project for Indonesia’s new capital – Indonesian media

Han Seung (left), Daewoo E&C’s head of overseas business, and Agung Fajarwanto, Hutama Karya’s operations director, sign a cooperation deal on Nov. 30, 2023, in Jakarta (Courtesy of Daewoo E&C)

You-Jung Lee 1

2023-12-05 15:45:30 yjlee@hankyung.com

Construction

South Korean Daewoo Engineering & Construction Co. is seeking business opportunities alongside Indonesia’s plan to relocate its capital as the builder is looking for future growth engines in overseas markets.

Daewoo E&C signed a cooperation deal on the project’s infrastructure business with PT Hutama Karya, Indonesia’s state-run construction company, at the Korea-Indonesia Economic Cooperation Forum in Jakarta last week the South Korean builder said on Tuesday.

The two companies on Nov. 30 inked a memorandum of understanding on an immersed tunnel project in Indonesia’s new capital, according to Indonesian local media.

The Southeast Asian country aims to relocate its capital from Jakarta to Nusantara in East Kalimantan by 2045 as a part of President Joko Widodo’s plan to distribute economic activity throughout the country and reduce the capital’s population density and traffic congestion.

The project is expected to provide various business opportunities for infrastructure to South Korean builders.

HOUSING SUPPLY FOR NEW CAPITAL

Daewoo E&C Chairman Jung Won-ju expressed the company’s interest in the project to Agung Wicaksono, deputy for Finance and Investment in the Nusantara Capital Authority, at the forum while building up a network with local businesspeople, the South Korean company said.

Wicaksono stressed the need for housing supply for the relocation and hoped to jointly work on measures to incorporate South Korea’s advanced housing culture into the new capital of Southeast Asia’s largest economy, according to Daewoo E&C.

Jung, who has been on business trips to Nigeria, Egypt and Singapore since mid-November, also met heads of major Indonesian property developers such as Ciputra Group Managing Director Budiarsa Sastrawinata and Sinar Mas Land Chairman Muktar Widjaja.

Jung showcased Daewoo E&C’s works for new town projects in Hanoi and competitiveness in constructing immersed tunnels and liquefied natural gas plants.

Write to You-Jung Lee at yjlee@hankyung.com

Jongwoo Cheon edited this article.